NEW YORK, Sept 30 (Reuters) - The U.S. Federal Trade

Commission allowed Chevron's ( CVX ) $53 billion purchase of

Hess Corp ( HES ) on Monday, in an order that barred Hess CEO

John Hess from Chevron's ( CVX ) board.

The FTC's order leaves Exxon Mobil's ( XOM ) challenge to

the deal, which is expected to stretch deep into next year, as

its final hurdle.

The proposed merger included a Chevron ( CVX ) board seat for Hess

when it was first announced last October, and the FTC sent a

second information request to Chevron ( CVX ) two months later.

Chevron ( CVX ) Chairman and CEO Mike Wirth welcomed the completion

of the FTC's review on Monday, but called it unfortunate that

John Hess would not be allowed to join the board.

"I have the utmost respect for John, the company he has

built, and the contributions he has made to our industry," he

said.

The FTC alleged that Hess -- the son of Hess Corp ( HES ) founder

Leon Hess -- had communicated publicly and privately with

members of the Organization of the Petroleum Exporting Countries

(OPEC) group of oil producers, and encouraged high-level

representatives of the group "in their stated mission to

stabilize global oil markets."

Allowing him to join Chevron's ( CVX ) board "would amplify Mr.

Hess's supportive messaging to OPEC and others, thereby

meaningfully increasing the likelihood that Chevron ( CVX ) would align

its production with OPEC's output decisions to maintain higher

prices," the FTC said.

Hess' board believes the claims are meritless, the company

said in a statement.

"Mr. Hess' public and private communications with OPEC

officials were consistent with his communications with U.S.

government officials, the International Energy Agency and global

business leaders on what will be needed to ensure an affordable

and orderly energy transition," the company said.

The allegations are similar to the FTC's claims against

former Pioneer Natural Resources CEO Scott Sheffield,

who was barred from joining Exxon Mobil's ( XOM ) board when the FTC

reviewed its $60 billion acquisition of Pioneer.

Sheffield has sought to have the claims withdrawn.

The two cases are "an important step towards ensuring that

U.S. oil producers are serving as a competitive check on OPEC+

rather than subordinating their independent decision-making to

the goals set by a cartel," FTC Chair Lina Khan and the

Commission's two other Democratic members said on Monday.

The FTC's two Republican commissioners voted against the

Chevron-Hess action, calling it politically motivated and

lacking basis in antitrust law.

"The proposition that Mr. Hess's comments could move global

oil markets is laughable," said Commissioner Andrew Ferguson.

The deal will still need to clear a challenge by Exxon Mobil ( XOM )

and CNOOC Ltd, Hess's partners in a Guyana joint

venture, who claim a right of first refusal to any sale of

Hess's Guyana assets, the prize in the proposed merger.

A three-judge arbitration panel is due to consider the case

next May. Chevron ( CVX ) and Hess say a decision is expected by August,

while Exxon Mobil ( XOM ) expects it by September 2025.

John Hess will be allowed to advise Chevron ( CVX ) on discussions

with Guyanese government officials, according to the FTC order.

The proposed all-stock acquisition is one of the largest in

a consolidating U.S. oil and gas industry where several

multibillion-dollar deals have been disclosed.